1983 (5) TMI 214 - SC - VAT and Sales Tax

Constitutional validity of sub-section (1) of section 5 of the Bihar Finance Act, 1981 which provides for the levy of a surcharge on every dealer whose gross turnover during a year exceeds Rs. 5 lakhs, in addition to the tax payable by him, at such rate not exceeding 10 per centum of the total amount of the tax, and of sub-section (3) of section 5 of the Act which prohibits such dealer from collecting the amount of surcharge payable by him from the purchasers challenged

Held that:- Appeal dismissed. As so far as sales of coconut oil outside the State were concerned, they were, as it were, by reason of section 26 of the Act read in conjunction with article 286, taken out of the purview of the Act, and that they had the effect of setting at naught and obliterating in regard thereto the provisions contained in the Act relating to the imposition of tax on the sale or purchase of such goods and in particular the provision contained in the charging section, section 3, and the provisions contained in rule 20(2) and other provisions which were incidental to the process of levying such tax. The aforementioned passage relied upon cannot be read out of context in which it appears and if so read, it is hardly of any assistance to the appellants.